01-16-2007, 04:00 PM
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Developer & Designer, News Editor Emeritus
Join Date: Aug 2006
Posts: 12,959
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HTC OEM/ODM Orders Take a Hit; More Choice in 2007 and Beyond
"High Tech Computer's (HTC's) OEM/ODM orders for handsets have been slowly eroded by other Taiwan-based handset makers after HTC began to push its own-brand handset business in mid-2006, with Chi Mei Communication Systems (CMCS) being the latest to put a dent in orders placed with HTC, according to market sources. CMCS, an affiliate of Hong Kong-listed Foxconn International Holdings (FIH), has recently received orders for smartphones from Hewlett-Packard (HP) and Palm, with volume shipments likely to begin by the end of 2007, the sources indicated. Although HTC currently is still one of the suppliers of iPAQ-series handsets to HP, the US vendor is expected to terminate its relationship with HTC by the second half of this year since HP has also added Quanta Computer and LG Electronics to its list of handset suppliers, in addition to CMCS, the sources noted. Palm is also likely to lower its shipment volume from HTC, since Taiwan-based Inventec Appliances has now begun volume shipments of Treo-series handsets to Palm, with CMCS to follow suit by the end of this year, the sources stated."
It looks like HTC has a tough year ahead. Since the company decided to market devices under its own brand, its OEM/ODM orders have suffered with major players such as HP, Palm, i-mate, and O2 switching to the lesser-known Quanta, Asus, Arima Communications, Gigabyte, and Inventec. From a consumer perspective, this may not be a bad outcome. With more manufacturers now offering Windows Mobile-based devices than ever before, we can expect a greater variation of gadgets on store shelves in 2007 and beyond. As for HTC, it is very unlikely that they'll be out of the game anytime soon. What we're seeing now is competition - something that HTC has so successfully avoided over the past few years. Add in Apple's iPhone, and we may finally see HTC and the aforementioned emerging manufacturers use competition to innovate on multiple fronts. Fingers crossed.
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